BitMEX co-founder Arthur Hayes believes the Federal Reserve slashed interest rates by 50 basis points to boost Kamala Harris’ presidential campaign.
In a new Cointelegraph interview, Hayes says Fed Chair Jerome Powell and Treasury Secretary Janet Yellen are teaming up to increase the odds that Kamala Harris will take over the White House after the election.
“I have a macro view that Jay Powell and Janet Yellen want to juice financial markets to help Kamala Harris win the election and obviously this fits within that thesis. Because if you look at the US economy, it’s extremely strong.
GDP growth [for] the third quarter this year was about I think [around 2%] positive real growth. There’s still unemployment, it’s still quite low by historical standards.
Why is the Fed cutting rates? It seems like the current rate regime was perfectly fine with a growing US economy. So, what was so bad that they needed to cut 0.5% – the largest rate cut since March of 2020.
I believe they’re trying to get the markets to go even higher to make people feel even wealthier as they go into the ballot box in November.”
But the crypto veteran warns that the Fed’s aggressive rate cut comes at a cost, which Americans will feel after the election.
“Inflation is going to accelerate after this point because if people have been saying that the US government has been recklessly spending money, how does making it cheaper for them to borrow help that position?”
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
The post Here’s Why the Fed Cut Rates by 50 Basis Points Despite Extremely Strong US Economy, According to Arthur Hayes appeared first on The Daily Hodl.